Donaco International, a boutique casino company on the Indochina Peninsula, said it was suspending all lawsuits between the company and the former owner of its Star Vegas Resort and Club (file photo) business in Poipet, Cambodia, for two months. The two parties agreed to use the two-month negotiation period to negotiate an agreement.
In a filing with the Australian Stock Exchange on Monday, Donaco's board said the company had signed a memorandum of understanding with the Thai supplier of its Star Vegas business, under which "all litigation matters will be suspended for two months" between the two sides, allowing the parties to negotiate an agreement
Donaco said the suspension applied to Singapore arbitration claims against Thai suppliers, rental disputes in Cambodia and "all other litigation matters" in Cambodia, Thailand and Australia.
The legal battle between Donaco and the trio of former Thai partners has been a constant over the past few years. The trio sold Star Vegas in Poipet to Donaco for $360 million in 2015. The agreement between the parties included a non-compete clause, which Donaco says was violated. The parties have tried several solutions, including lawsuits in several jurisdictions.
Donaco said last month it had "overall bad results" in the three months to Dec. 30, 2019, due to the company's casino's December gaming business slump. Donaco's December-quarter group-wide earnings before interest, taxation, depreciation and amortization (EBITDA) were A$3.09 million ($2.07 million), down 64.6% from A$8.72 million in group EBITDA a year ago.
Donaco's representative location, Star Vegas Resort and Club, is near Cambodia's border with Thailand, where casino gambling is illegal. The Aristo International Hotel and related casinos are near the border between Vietnam and China.
The group's management has entered a transition period again after a board battle and resignation.
BY: 바카라사이트